CHAPTER 118
PROCEDURES FOR TAX ABATEMENT ASSESSMENTS
Section
118.01 Tax abatement application procedure
118.02 Factors to be considered for abatement applications
118.03 Scorecard for new businesses – Project evaluation criteria for new businesses to Rensselaer
118.05 Binding conditions for abatement
118.06 Designation of City Council’s tax abatement agent
118.01 TAX ABATEMENT APPLICATION PROCEDURE.
(A) Each applicant for a real or personal property tax abatement shall satisfy the requirements of I.C. 6-1.1-12.1 et seq., and the requirements of this chapter.
(B) For purpose of this chapter, “application” means “the City of Rensselaer property tax abatement program application” and shall be comprised of a completed “City of Rensselaer property tax abatement program application,” applicable scoring sheet, and proposed abatement resolution with the City of Rensselaer, Indiana.
(C) Application forms shall be provided to applicants upon request by the City of Rensselaer and made available on the City of Rensselaer’s government’s website.
(D) If an applicant is seeking both a real property tax abatement and a personal property tax abatement, a separate application must be filed for each type of abatement.
(Ord. 17-2021, passed 10-25-2021)
118.02 FACTORS TO BE CONSIDERED FOR ABATEMENT APPLICATIONS.
(A) Weighted factors to be considered for abatement applications are set forth in Section 30 (real property) and Section 40 (personal property).
(B) If the City of Rensselaer determines that the applicant’s project possesses the potential to have a transformative impact on the City of Rensselaer’s community, the Council may award an applicant a transformative project multiplier to multiply the applicant’s total abatement score by 1.2. The new total score will be used to determine the abatement award, if any.
(C) Abatements shall be awarded pursuant to the abatement schedules set forth in Section 50 (real property) and Section 60 (personal property).
(Ord. 17-2021, passed 10-25-2021)
118.03 SCORECARD FOR NEW BUSINESSES – PROJECT EVALUATION CRITERIA FOR NEW BUSINESSES TO RENSSELAER.
|
New Investment in Property and Equipment |
|
|---|---|
|
$25,000 to $249,999 |
3 |
|
$250,000 to $499,999 |
6 |
|
$500,000 to $749,999 |
9 |
|
$750,000 to $999,999 |
12 |
|
$1,000,000 to $1,999,999 |
15 |
|
$2,000,000 to $3,999,999 |
18 |
|
$4,000,000 to $9,999,999 |
20 |
|
$10,000,000 to $49,999,999 |
25 |
|
$50,000,000 to $74,999,999 |
30 |
|
$75,000,000 and above |
35 |
|
SUBTOTAL: New Investment |
|
|
New Employment: |
|
|---|---|
|
1 to 10 new FTE |
3 |
|
11 to 15 new FTE |
6 |
|
16 to 25 new FTE |
9 |
|
26 to 50 new FTE |
12 |
|
51 to 74 new FTE |
15 |
|
75 to 99 new FTE |
18 |
|
100 or more FTE |
20 |
|
SUBTOTAL: New Jobs |
|
|
New Employment Wage Level: |
|
|---|---|
|
200% to 224.9% of state minimum wage |
3 |
|
225% to 249.9% of state minimum wage |
6 |
|
250% to 299.9% of state minimum wage |
9 |
|
300% to 324.9% of state minimum wage |
12 |
|
325% to 349.9% of state minimum wage |
15 |
|
350% to 399.9% of state minimum wage |
20 |
|
400% or more of state minimum wage |
25 |
|
SUBTOTAL: New Employment Wage Levels |
|
|
* State of Indiana minimum wage in effect on the date the application is filed. |
|
|
Infrastructure Requirements Already in Place |
|
|---|---|
|
Adequate Road |
2 |
|
Water |
2 |
|
Wastewater |
2 |
|
Electric Service |
2 |
|
Gas |
2 |
|
SUBTOTAL: Infrastructure |
|
|
TOTAL POINTS: STANDARD CRITERIA |
|
|
Bonus Evaluation Points |
|
|---|---|
|
Targeted industry sector |
10 |
|
Project located in designed CRA |
10 |
|
Use of existing vacant structure |
2 |
|
Offers employer-sponsored health and wellness benefits |
1 |
|
Offers employer-sponsored retirement plan |
1 |
|
Designated community involvement |
3 |
|
Use of local suppliers and contractors in construction/operation of project |
2 |
|
Offers mentoring/internship program |
1 |
|
SUBTOTAL: Bonus Evaluation |
|
|
TOAL POINTS: ALL CRITERIA |
|
|
Transformative Multiplier (if applicable): Total Points multiplied by 1.2 |
|
(Ord. 17-2021, passed 10-25-2021)
118.04 SCORECARD FOR EXISTING BUSINESSES – PROJECT EVALUATION CRITERIA FOR EXISTING BUSINESSES IN RENSSELAER.
|
New Investment in Property and Equipment |
|
|---|---|
|
$25,000 to $249,999 |
3 |
|
$250,000 to $499,999 |
6 |
|
$500,000 to $749,999 |
9 |
|
$750,000 to $999,999 |
12 |
|
$1,000,000 to $1,999,999 |
15 |
|
$2,000,000 to $3,999,999 |
18 |
|
$4,000,000 to $9,999,999 |
20 |
|
$10,000,000 to $49,999,999 |
25 |
|
$50,000,000 to $74,999,999 |
30 |
|
$75,000,000 and above |
35 |
|
SUBTOTAL: New Investment |
|
|
New Employment: Number of New Full-Time Equivalent (FTE) Jobs |
|
|---|---|
|
1 to 10 new FTE |
3 |
|
11 to 15 new FTE |
6 |
|
16 to 25 new FTE |
9 |
|
26 to 50 new FTE |
12 |
|
51 to 74 new FTE |
15 |
|
75 to 99 new FTE |
18 |
|
100 or more FTE |
20 |
|
SUBTOTAL: New Jobs |
|
|
New Employment Wage Level: |
|
|---|---|
|
200% to 224.9% of state minimum wage |
3 |
|
225% to 249.9% of state minimum wage |
6 |
|
250% to 299.9% of state minimum wage |
9 |
|
300% to 324.9% of state minimum wage |
12 |
|
325% to 349.9% of state minimum wage |
15 |
|
350% to 399.9% of state minimum wage |
20 |
|
400% or more of state minimum wage |
25 |
|
SUBTOTAL: New Employment Wage Levels |
|
|
* State of Indiana minimum wage in effect on the date the application is filed. |
|
|
Infrastructure Requirements Already in Place |
|
|---|---|
|
Adequate Road |
1 |
|
Water |
1 |
|
Wastewater |
1 |
|
Electric Service |
1 |
|
Gas |
1 |
|
SUBTOTAL: Infrastructure |
|
|
Years Applicant Has Operated in Rensselaer |
|
|---|---|
|
1 to 2 years |
1 |
|
3 to 4 years |
2 |
|
5 to 6 years |
3 |
|
7 to 8 years |
4 |
|
9 or more years |
5 |
|
SUBTOTAL: Length of Operations |
|
|
TOTAL POINTS: STANDARD CRITERIA |
|
|
Bonus Evaluation Points |
|
|---|---|
|
Targeted industry sector |
10 |
|
Project located in designed CRA |
10 |
|
Use of existing vacant structure |
2 |
|
Offers employer-sponsored health and wellness benefits |
1 |
|
Offers employer-sponsored retirement plan |
1 |
|
Demonstrated community involvement |
3 |
|
Use of local suppliers and contractors in construction/operation of project |
2 |
|
Offers mentoring/internship program |
1 |
|
SUBTOTAL: Bonus Evaluation |
|
|
TOAL POINTS: ALL CRITERIA |
|
|
Transformative Multiplier (if applicable): Total Points multiplied by 1.2 |
|
|
Taxable Year |
Score Range (Points) |
1-9 |
10-19 |
20-29 |
30-39 |
40-49 |
50-59 |
60-69 |
70-79 |
80-89 |
90-99 |
100-114 |
115+ |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
YR 1 |
|
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
|
YR 2 |
|
|
50% |
67% |
75% |
80% |
84% |
86% |
88% |
89% |
90% |
100% |
100% |
|
YR 3 |
|
|
|
34% |
50% |
60% |
68% |
72% |
75% |
78% |
80% |
89% |
90% |
|
YR 4 |
|
|
|
|
25% |
40% |
54% |
58% |
63% |
67% |
70% |
78% |
80% |
|
YR 5 |
|
|
|
|
|
20% |
38% |
44% |
50% |
56% |
60% |
67% |
70% |
|
YR 6 |
|
|
|
|
|
|
24% |
30% |
38% |
45% |
50% |
56% |
60% |
|
YR 7 |
|
|
|
|
|
|
|
16% |
25% |
34% |
40% |
45% |
50% |
|
YR 8 |
|
|
|
|
|
|
|
|
13% |
23% |
30% |
34% |
40% |
|
YR 9 |
|
|
|
|
|
|
|
|
|
12% |
20% |
23% |
30% |
|
YR 10 |
|
|
|
|
|
|
|
|
|
|
10% |
12% |
20% |
|
Taxable Year |
Score Range (Points) |
1-9 |
10-19 |
20-29 |
30-39 |
40-49 |
50-59 |
60-69 |
70-79 |
80-89 |
90-99 |
100-114 |
115+ |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
YR 1 |
|
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
|
YR 2 |
|
|
50% |
67% |
75% |
80% |
84% |
86% |
88% |
89% |
90% |
100% |
100% |
|
YR 3 |
|
|
|
34% |
50% |
60% |
68% |
72% |
75% |
78% |
80% |
89% |
90% |
|
YR 4 |
|
|
|
|
25% |
40% |
54% |
58% |
63% |
67% |
70% |
78% |
80% |
|
YR 5 |
|
|
|
|
|
20% |
38% |
44% |
50% |
56% |
60% |
67% |
70% |
|
YR 6 |
|
|
|
|
|
|
24% |
30% |
38% |
45% |
50% |
56% |
60% |
|
YR 7 |
|
|
|
|
|
|
|
16% |
25% |
34% |
40% |
45% |
50% |
(Ord. 17-2021, passed 10-25-2021)
118.05 BINDING CONDITIONS FOR ABATEMENT.
(A) In applying for a property tax abatement, the applicant waives its right to appeal the property tax assessment of any subject property that has been granted an abatement for the life of the abatement. After the property tax abatement expires, the applicant regains the right to appeal the property tax assessment for the formerly abated property in question.
(B) By submitting an application for tax abatement, the applicant agrees to pay an administrative fee to the City of Rensselaer Clerk-Treasurer equal to 3% of the total value abated on an annual basis. The annual payment is to be made at the time the annual compliance paper is due.
(Ord. 17-2021, passed 10-25-2021)
118.06 DESIGNATION OF CITY COUNCIL’S TAX ABATEMENT AGENT.
(A) The Rensselaer City Council designates the Jasper Economic Development Organization (“JCEDO”) as its agent to administer the tax abatement application process.
(B) JCEDO shall be responsible for identifying and assisting potential applicants in the completion of abatement applications and may remit completed applications to the Mayor of the City of Rensselaer.
(C) JCEDO shall not have the discretion to approve or deny a request for a tax abatement under this provision; that power is only vested in the City Council of the City of Rensselaer according to law.
(D) In consideration for the work contributed by JCEDO in this effort, the Rensselaer City Council will pay JCEDO a fee of 3% of all tax abatements awarded by the Rensselaer City Council.
(Ord. 17-2021, passed 10-25-2021)